Shareholders Meeting

Genoa, May 10th 2018

Investor Relations Department

2

Page

1. Executive Summary 3-5

2. Strategic business overview 6-11

3. Orders and performance by region 12-20

4. Main Key events 21-31

5. Delivery record 32-35

6. Dividend and year 2018 guidance 36-38

7. 2018 first quarter – Key Data 39-40

8. Accounting definitions 41-43

9. Glossary of rail terminology abbreviations 44-46

Agenda

3

1. Executive summary

4

Innovation - New Dynamic

Headway Technology ANSALDO STS signed a MoU with the

Danish Metroselskabet to develop a

Proof of Concept for a new Dynamic

Headway leveraging Hitachi

technologies for Copenhagen Metro.

HSL in Italy Verona-Padua HS/HC line

project, Verona-Vicenza

junction, through the

participation in the IRICAV

DUE consortium,

following CIPE resolution

Metro in USA New metro fleet of railcars

and CBTC system for

Baltimore Metro Subway

Link (MTA)

ETCS in Australia Rio Tinto successful first

fully autonomous heavy

haul train journey with

ASTS driverless

technology

More than 70 projects activations

1,700 km of lines and

285 stations activated

Executive summary

Strategy - New strategic

business overview ANSALDO STS has undertaken a

strategic business overview in recent

months. Key factors to address have

been slower market growth, changing

competition and new future trends.

Year 2017 Results - Key Data

5

(M€) FY 2017 FY 2016 % change

New Orders 1,500.8 1,475.8 1.7%

Order Backlog 6,457.5 6,488.4 -0.5%

Revenue 1,361.0 1,327.4 2.5%

EBIT 100.8 126.8 -20.5%

ROS 7.4% 9.6% -2.2 p p

Tax Rate 34.5% 33.2% 1.3 p p

Net Result 64.9 77.9 -16.7%

Net Working Capital 127.2 120.5 5.5%

Net Financial Position (357.5) (338.0) 5.8%

R&D 41.3 36.7 12.7%

Total Headcount 4,228 3,951 7.0%

EVA 34.0 57.9 -41.2%

Financials

6

2. Strategic business overview

7

A new overview. Ansaldo STS has undertaken a strategic business overview in recent months. Key

factors to address have been slower market growth, changing competition and new future trends.

Summary

Strategic overview

Future focus areas

Turnkey projects accessing PPP financing are expected to become increasingly relevant

O&M for Turnkey is expected to grow faster than the average market

Technology – ERTMS, CBTC will be differentiators

Enablers – automation, digital, satellite, Hitachi technologies

Potential. Against this flat background Ansaldo STS has the potential to exceed the market on the basis

of its favourable geographic and business mix.

Flat market. Our assumption for the coming five years is an annual average addressable market of

€15.4bn, representing just 0.8% growth.

Projects. We shall put projects at the centre of our business. Whilst strengthening our domestic markets

there are four areas in particular of future focus.

8

The €15.4bn addressable market is divided into three principal segments: signalling,

systems for turnkey, services.

Particular growth areas for us are operation and maintenance (O&M) for turnkey in

general, and system technology for turnkey in north America in particular.

Addressable market by segment

Forecasts based on analysis of projects in 60 countries

9

Overall market share is approximately 11%

Addressable market size

ASTS has the potential to exceed the market growth, allowing us to maintain and grow the

current market share

ASTS addressable market size: 2018-2022 average

North America

Market Size

2.6 B€

Latin America

Market Size

0.9 B€

Western Europe

Market Size

5.4 B€

ME & Africa

Market Size

2.2 B€

Asia Pacific

Market Size

3.1 B€

Rest of the World

Market Size

1.2 B€

ASTS vision for the future

Signalling Next Generation: ASTS will continue to invest in advanced CBTC/ERTMS standards,

which are replacing conventional Signalling technologies, becoming a commodity

Automation, Digital and (potentially) Satellite as new enablers for the future Business Model.

Integrated multimodal transport systems and solutions: future Signalling systems will focus on

the integration of current Signalling technologies with non-conventional /advanced technologies.

ASTS will leverage its strengths in systems integration and Turnkey management to provide

solutions for multimodal operators serving end-to-end mobility requirements.

Future business as provider of integrated multimodal transport systems and solutions

10

Technological positioning and trends

11

Key strategic initiatives

Exploiting domestic growing markets (e.g. North America).

Adopting opportunistic approach in non-domestic focusing on

turn-key projects and standard technologies

Exploiting O&M business levering on its assets and on

partnerships, while starting developing new innovative services/

value propositions

• Organic Growth

Leverage current positioning by geographies

and line of business to outperform the market

I - Organic Growth Specific initiatives

II - Non-Organic Growth

Strengthening the position in big markets though local

agreements (e.g. UK and China)

Explore selective JV and M&A by markets and

technology

III - Organisational Events

Tuning current organizational structure and delivery model

Localizing key capabilities (e.g. System Integration / CBTC

in US; delivery and expertise in local areas)

Strengthening Structured Finance

Investigate possible adaptation of the operating

model in line with the Business requirements

IV - Effectiveness and Efficiency

Focusing investments mainly on core technologies, ERTMS,

CBTC and Automation

Exploiting continuous improvement initiatives

Platforms optimization and future technologies

Keep on working on efficiency programs

Str

ate

gic

In

itia

tives

12

3. Orders and performance by region

Year 2017 Results - Main orders detail

13

Country Project Name Customer Value (M€)

Italy HS/HC Verona-Vicenza junction IRICAV 2 336

USA Baltimore Metro MTA 133

Italy Framework Agreement with RFI RFI 100

Various EU/Asia Components Various 82

DenmarkCopenhagen Cityringen variation orders

(included O&M) Metroselskabet 82

Italy On board equipment for Caravaggio

trainsHRI 63

Various EU/Asia Service & Maintenance Various 58

USA Components Various 56

Australia Rio Tinto variation orders Rio Tinto 48

Italy ACC and ACC-M signalling equipment RFI 40

Italy Naples Line 6 variation orders Naples Municipality 24

USA Stanford-New Haven line signal

equipmentMNRR 22

USA Los Angeles - Westside extension -

section2LACMTA 21

Australia On board equipment Rotem 20

Main orders

HS/HC Verona-Padua line

14

Ansaldo STS, following the recent CIPE resolution concerning the approval of the definitive project for the

Verona-Vicenza junction, the first functional section of the Verona-Padua High Speed/High Capacity line, is

involved in the project execution through the participation in the IRICAV DUE consortium as concession’s

owner.

The amount of Ansaldo STS stake is about EURO 336 million.

Main orders

Baltimore Metro

Hitachi Ansaldo Baltimore Rail Partners, LLC, a limited liability corporation between Hitachi Rail Italy SpA and

Ansaldo STS USA, Inc. (the US subsidiary of Ansaldo STS) has been awarded a $400.5 million contract from

Maryland Transit Authority (MTA) to provide a new metro fleet of railcars and a Communication Based Train

Control (CBTC) system for the Baltimore Metro Subway Link.

Ansaldo STS scope of work is equivalent to $148 million (€133 million).

The award of the Baltimore project marks Ansaldo STS’s largest win in North America and represents a

significant milestone in the company’s recognition as a major North American CBTC provider. The company

has already successfully delivered and is delivering CBTC projects of similar caliber both in North America and

globally. Ansaldo STS will integrate a new CBTC system into the existing 15.5 miles of MTA infrastructure.

15

Main orders

Italian Rail Network (RFI) has awarded Ansaldo STS a two-year €100m technical assistance

and maintenance contract for its train control solutions installed across the Italian main line and

high-speed network.

The contract comprises technical services, maintenance and repair of existing Ansaldo STS

systems on the RFI network.

16

Main orders

Framework agreement with RFI

ACC and ACC-M signaling equipment

17

Ansaldo STS has been awarded of a contract worth EURO 40 million by RFI (Rete Ferroviaria Italiana) for the

supply of ACC and ACC-M signaling equipment. Scope of the contract for Ansaldo STS is to supply all the

components for the Computer-Based Interlocking System (also as a Multi-station), such as: the Central Post

that carries out vital operations, users interfaces both for operators and maintenance staff, the peripheral

units and object control devices (signals, switches, track circuits).

The scope of work also includes innovative system configuration and verification tools developed by Ansaldo

STS, which allow a faster and faster design and activation phase.

Main orders

23%

30% 9%

19%

19%

Revenue

1,327

29%

29% 9%

33%

New

Orders

1,476

21%

24%

14%

30%

11%

20%

29%

10%

24%

17%

Revenue

1,361 51%

14%

21%

12%

New

Orders

1,501

Backlog, Orders & Revenue by Geographic Area

18

Year - 2016

Backlog

6,488

27%

21%

13%

29%

10%

Backlog

6,457

Year - 2017

2%

Recent performance by region

Italy

Rest of Europe

N. Africa/Mid. East

Americas

Asia Pacific

19

Orders Year 2017

Revenue Year 2017

Recent performance by region

Headcount

20

Country Main Locations 2017 2016

ITALY

Genoa, Naples,

Turin, Potenza,

Branches

1,857 1,704

FRANCE Les Ulis, Riom 658 627

SPAIN Madrid 174 174

SWEDEN Stockholm 69 61

OTHER EUROPE Munich, London 18 14

USA - CANADA

Pittsburgh,

Batesburg,

Montreal

754 712

AUSTRALIA Perth, Brisbane 260 266

INDIABangalore, Noida,

Kolkata, Mumbai313 277

MALAYSIA Kuala Lumpur 62 54

CHINA Beijing 63 62

TOTAL HEADCOUNT 4,228 3,951

Recent performance by region

2017

2016

1.857 44%

919 22%

754 18%

698 16%

1.704 43%

876 22%

712 18%

659 17%

Italy

Rest of Europe

Americas

Asia Pacific

21

4. Main key events

Stockholm Red Line Metro

22

• On November 7, 2017, the Swedish client SL has terminated unilaterally the contract, alleging breach by

Ansaldo STS.

• On December 20, 2017, an agreement was signed between Ansaldo STS and SL, regarding the return to

the Company of all the bonds previously provided in favor of SL, following the repayment of all the advance

payments paid by SL to the Company, for a total amount of approximately EUR 76 million (approximately

EUR 14 million of VAT and EUR 4 million of interest included).

• According to the signed agreement Ansaldo STS paid back the above mentioned amounts against the

release by SL of all the bonds. This payment was made under protest, without prejudice to Ansaldo STS'

rights and pending the final legal resolution of the dispute.

• The Company has evaluated all the possible judicial initiatives to defend its own rights, including the right

to obtain the full payment of the work performed to date as well as the compensation for the damages

suffered, in particular due to the unilateral termination by SL of the contractual relationship.

• Further to this, Ansaldo STS has on April 3, 2018, filed a request for arbitration against SL.

• In the request for arbitration Ansaldo STS has appointed its arbitrator and has stated that it intends to claim

that the arbitral tribunal shall establish SL’s termination of the System Delivery Agreement and the

Maintenance Agreement was unfounded, the rescission constitutes a breach of contract and Ansaldo STS

is entitled to compensation.

Main events

23

Hitachi Social Innovation Forum 2017 Milan - A first For the first time in Italy on 18th October Hitachi has hosted the “Hitachi Social Innovation Forum”, at the Pirelli Hangar Bicocca exhibition centre in

Milan. The event has been a great opportunity to discover what Social Innovation is and how it will affect the socio-economic dynamics of Italy.

"Hitachi is striving to become an innovation partner in the IoT era, through the global rollout of Lumada, using our expertise in

OT* and IT. We believe that it is possible to create and provide digital solutions that will resolve the issues faced by customers

and by Italian society. By providing solutions that combine Hitachi's digital technologies, including IoT, robotics, and artificial

intelligence, with products and systems in the railway, healthcare, and industrial device fields, through Collaborative Creation

with customers and local partners in Italy, we will contribute to the further development and digitalization of Italian society.“

Hitachi President and CEO Toshiaki Higashihara.

Main events

“Hitachi's entered in the Italian market in 1981 with the electronic component and home appliance businesses

By providing solutions which resolve the issues that Italy is facing, such as growing medical costs, while increasing energy efficiency and productivity and

improving the efficiency of public transportation, Hitachi will strive to expand the scale of its business from the current level of 1.2 billion euro to 1.5 billion euro

in FY2020. Hitachi leverages on its peculiarity of combining Operational Technology (OT) and Information Technology (IT) for the creation of value through

Digital Transformation. In the future, Hitachi will use Lumada along with the business platforms, experience and expertise that it has cultivated up to now to

create added value from device and system data and develop digital solutions with a focus on the railway systems, energy, water, and healthcare business

fields.”

WHAT SOCIAL INNOVATION IS FOR HITACHI?

THINK about the improvement that technical innovation is bringing to society, developing new solutions in the field of industry, infrastructure, transportation,

healthcare and energy.

UNDERSTAND how advanced technologies can affect the development of smart cities, creating new, more dynamic business models.

EVALUATE together new technological solutions that allow you to achieve optimized management of your business, moving away from traditional

processes.

DISCOVER how, thanks to a collaborative approach and the integration of IT and Operational Technologies, Hitachi is creating virtuous systems to drive

companies, institutions, and urban centres to innovation

24

Hitachi Social Innovation Forum 2017 Milan - Strategy

Source: Hitachi Social Innovation Forum Presentation

Main events

25

Hitachi Social Innovation Forum 2017 Milan - Our video

Ansaldo STS, as part of the Hitachi Group, will have a preferred access to technological

innovation contributing to the social sustainable transformation. Ansaldo STS, leveraging

Hitachi's digital technologies, will enhance the quality of life of passengers and customers.

http://www.ansaldo-sts.com/en/news/hitachi-social-innovation-forum-2017-milan#video

Main events

Ansaldo STS technology and delivery capability key to Rio Tinto

Fully autonomous freight rail trial success

Ansaldo STS, a recognized global leader in driverless technology for metro and rail solutions, has now proven

its expertise in autonomous heavy freight rail, following Rio Tinto’s recent successful trial of Australia’s first

fully autonomous heavy haul train journey. Trains can be up to 2.5 km long and are intended to travel a

distance up to 1,200 km in the Pilbara mines region.

Through the development and application of highly specialized technology based on the ETCS level 2

signalling standard, Ansaldo STS has worked with Rio Tinto to engineer and deploy a train control solution for

Rio Tinto’s remote iron ore rail operations in north-west Western Australia that will support the complete

automation of the miner’s rail operations.

The solution includes the installation of a driving module on board each train and enables the fleet’s operation

to be centrally managed from a control centre many kilometers away in Perth. Such a solution delivers

significant benefits to the operator including increased safety and productivity.

26

Main events

EXPO Ferroviaria, the most important event of the railway sector in Italy, opened in Milan at Rho Fair from 3rd

to 5th October. Ansaldo STS and Hitachi Rail Italy - since 2015 part of the Hitachi Group - were present to the

exhibition with a joint booth in which they presented their technology and their innovation that places them

among the main players of the sector.

EXPO Ferroviaria represents for the two companies, more and more engaged on the international market and

protagonists of events overseas, an important showcase, as well as a fundamental opportunity of discussion

and business in their own Country, where they are committed to important projects, some already completed

and others either in progress or in development.

27

Ansaldo STS and Hitachi Rail Italy at Expo Ferroviaria 2017

Main events

New Dynamic Headway Solution for Copenhagen Metro (1/2)

Ansaldo STS has signed in June 2017 a MoU with Metroselskabet to develop a Proof of Concept for a new

Dynamic Headway solution leveraging Hitachi technologies for the Copenhagen Metro.

The new Dynamic Headway solution will be designed using both Ansaldo STS’s train control systems and

Hitachi’s digitalization and IoT (Internet of Things) technology to detect congestion through sensors at stations

in order to analyze demand. A dynamic solution will help resolve congestion before it impacts on passengers,

thereby increasing passenger satisfaction. For the operators this means saving energy and operation costs

by increasing utilization of services.

28

Main events

The Copenhagen Metro line consists of 21 km of double track (10 km underground and 11 km of elevated

track) and passes through 22 stations connecting the various parts of the city centre, the area of Ørestad and

the airport. Its 34 unattended trains travel at a maximum speed of 80 km/h, ensuring that passengers have a

maximum of only two minutes to wait during peak hours, and are guaranteed a 24-hour service.

29

Main events

New Dynamic Headway Solution for Copenhagen Metro (2/2)

Technology, innovation and sustainable development were the main topics at the core of the 62th edition of

the UITP Global Public Transport Summit, the most important two-years world exhibition on urban and

regional transportation, which took place in Montreal, Canada, between the 15th and the 17th of May 2017.

Ansaldo STS and Hitachi Rail Italy, key players at the international fair with a joint stand (Hall 2), presented

the newest technologies and products to clients, institutions, partners and suppliers. Key players of the 2017

edition were the metros, both traditional and driverless, chosen by a growing number of cities across the

world: Milan, Rome, Copenhagen, Miami, Honolulu, Taipei, Riyadh and Lima.

30

UITP 2017 in Montreal (1/2)

Main events

Ansaldo STS invited guests, clients and partners to join a proper “travel experience”, visiting both the

driverless underground solutions and, moreover, the ultimate technologies designed for subways and

railway transportation (passenger and freight): the Communication Based Train Control (CBTC), a new

generation of rail transit control, which enhances flexibility, reduces maintenance costs and improves

interoperability; and the European Rail Traffic Management System (ERTMS), the new European

interoperable railway signalling system, designed to guarantee the interoperability beyond borders (in

Europe as well as in Asia, Oceania and Middle East).

31

UITP 2017 in Montreal (2/2)

Main events

32

5. Delivery Record

HIGHLIGHTED DELIVERIES (1/2)

LA Metro Green Line

LIRR Ronkonkoma

Phase 1 completion

Selangor Malaysia

Subang Skypark project

PROJECTS KM STATIONS

70+ 1,700 285

Tours - Bordeaux section

of the Paris- Bordeaux HSL

Le Mans - Rennes HSL

Morocco HSL Tangier -

Kenitra

HIGH SPEED LINES FREIGHT LINES METRO

Definition of projects: commissioning of whole project or a scheduled phase

Roy Hill Project

Heavy Haul - Western

Australia

Rio Tinto

Full deployment in

operation of

ATO-attended

33

Delivery record

CTC Sapri North side: Paola - Battipaglia

Activation root south Gioia Tauro SCMT

Upgrading Turin - Padua line / Reconfiguration Module 4

ACC Multi-station Genoa junction

ERTMS/ETCS lev.2 Milan-Lambrate-Treviglio

Revamping SEDT Rome / extraordinary maintenance

Technological upgrading Turin - Padua line

ACC Ventimiglia

Revamping Naples junction

Aarhus Denmark

Urban line revenue service

PBI 45 stations

KfW 1 station

Karagpur 1 Station

State Railway of Thailand (SRT)

CBI five stations upgrade

Definition of projects: commissioning of whole project or a scheduled phase

34

Delivery record

CONVENTIONAL LINES

HIGHLIGHTED DELIVERIES (2/2)

MAIN RUNNING PROJECTS Americas

East Coast

Washington Metro

New York Metro, New Haven

SEPTA PTC & Sharon Hill

Long Island LIRR

MBTA, Baltimore Metro

West Coast

LACMTA - LA West Side Extension

Hawaii - Honolulu

Driverless Metro

Lima - Peru

Lima Metro Lines 2 & 4

Europe

Italy – HSL Line

Milano-Genova (Terzo Valico)

Direttissima Roma-Firenze, Verona-

Padova

Italy – Conventional Line

Torino – Padova Line

Italy - Metro

Roma, Napoli, Milano, Genova

France - HSL Line

Tours-Bordeaux (SEA)

Le Mans-Rennes (BPL)

Spain - HSL Line

Madrid-Lerida O&M

La Robla – Pola de Lena

UK

Ferriby-Gilberdyke line

Metro: Glasgow Subway

Denmark

Copenhagen Metro and City-Ring + O&M

Aarhus LRT

Belgium

Metro Brussels Lines 1&5

Sweden

Ester conventional line

Ester ERTMS level 2

Germany

SeRoBe

Velaro

Greece

Thessaloniki Metro

Turkey

Mersin –Toprakkale

Gebze - Köseköy

Metro: Ankara

Asia Pacific & Australia

South Korea

UI – Shinseol

Sudokwon

Rotem program

China

Metro:

Shenyang, Chengdu, Hangzhou, Xian,

Zhengzhou, Dalian, Shanghai, Wenzhou,

Tianjin linea 5

India

KFW

Metro Kolkata, Mumbay Monorail

Navi Mumbai Metro, Noida Metro

Malaysia

KVDT

Taipei

Metro: Circular Line

San-Ying Line MRT System

Australia

Rio Tinto – framework agreement (RAFA)

Roy Hill

Forrestfield Airport Link

North Africa & Middle East

Algeria

Oued Tlelat-Tlemcen line

Morocco

Tangiers-Kenitra HSL

Saudi Arabia

Riyadh Metro Line 3, PNU

United Arab Emirates

Abu Dhabi section 1

35

Delivery record

36

6. Dividend and year 2018 Guidance

37

Dividend Declaration

37

The Board of Directors of Ansaldo STS proposes to this

Shareholders meeting a total dividend amount equal to

30 M€.

The dividend per share is 0.15 €.

Dividend

Year 2018 main Key Data Guidance

38

(M€) 2017

Actual

2018

Guidance

New Orders 1,500.8 1,500 - 2,000

Order Backlog 6,457.5 6,450 - 7,050

Revenue 1,361.0 1,350 - 1,450

ROS 7.4% 8.0% - 8.5%

Net Financial Position (357.5) (300) - (380)

Guidance

2018 ROS is penalized by the implementation of the FRS 15 new standard.

Estimated impact is approximately -50 basis points.

39

7. First quarter 2018 results

40

(M€) Q1 2018 Q1 2017 % change

New Orders 225.4 266.1 -15.3%

Order Backlog 6,315.5 6,454.0 -2.1%

Revenue 318.5 299.1 6.5%

EBIT 26.2 25.9 1.2%

ROS 8.2% 8.7% -0.5 p p

Tax Rate 25.5% 30.9% -5.4 p p

Net Result 21.5 20.0 7.6%

Net Working Capital 132.4 151.4 -12.6%

Net Financial Position (332.3) (327.0) 1.6%

R&D 11.1 7.9 39.9%

Total Headcount 4,210 4,084 3.1%

EVA 10.5 8.5 23.1%

Financials

Q1 2018 Results – Key Data

Q1 2018 ROS is penalized by the implementation of the IFRS 15 new standard.

The negative impact is approximately -50 basis points.

41

8. Accounting definitions

Ansaldo STS management also assesses the performance of the group using certain indicators that

are not defined by the IFRS. The components of each indicator are described below as required by

CESR/05 - 178b Communication:

EBIT: earnings before interest and taxes, before any adjustment. EBIT excludes gains or losses on

unconsolidated equity investments and securities, as well as any gains or losses on sales of

consolidated equity investments, which are classified under “financial income and expense” or “share

of profits (losses) of equity-accounted investees” if related to equity-accounted investments.

Return on Sale (ROS): it is calculated as the ratio of EBIT to Revenue.

Free operating cash flow (FOCF): this indicator is the sum of cash flows generated by (used in)

operating activities and cash flows generated by (used in) investing and disinvesting in property, plant

and equipment, intangible assets and equity investments, net of cash flows from acquisitions and

sales of equity investments which are deemed “strategic” due to their nature or importance.

Economic Value Added (EVA): it is the difference between EBIT, net of income taxes and the cost of

the average invested capital of the current and previous year measured on the base of the Weighted

Average Cost of Capital (WACC).

42

Accounting definitions

Net Working Capital: It is working capital less provisions for current risks and other current assets

and liabilities.

Net Financial Position (NFP) or Debt: The calculation model used complies with paragraph 127 of

the CESR/05-054b recommendations implementing Regulation (EC) n° 809/2004.

New Orders: It is the sum of the contracts agreed with customers during the reporting period that

meet the contractual requirements to be recorded in the orders book.

Order Backlog: It is the difference between new orders and revenue for the period (including the

change in contract work in progress). This difference is added to the backlog for the previous year.

Headcount: It is the number of employees recorded in the relevant register on the reporting date.

Research and development costs: total expense incurred for research and development, both

expensed and sold. Research expense taken to profit or loss usually relates to “general technology",

i.e. aimed at gaining scientific knowledge and / or techniques applicable to various new products and /

or services. Sold research expense represents that commissioned by customers and for which there

is a specific sales order and it is treated exactly like an ordinary order (sales contract, profitability,

invoicing, advances, etc.) in accounting and management terms.

43

Accounting definitions

44

9. Glossary of rail terminology abbreviations

ACC – M: “Apparato Centrale Computerizzato Multistazione” is a centralized interlocking system

through which it is possible to manage multiple stations along the line.

ATP: Automatic Train Protection, or ATP, is an ATC subsystem responsible for the safe operation of a

signaling system. It imposes speed limits on trains, both to maintain a safe operating distance

between them and to comply with safety and speed requirements. The ATP system is designed to be

a fail-safe (vital) system.

CBTC: Communication Based Train Control, or CBTC, is a system that allows for the

interchangeability of different technological systems in use on various metro lines. CBTC can be

understood as an attempt to create an ERTMS type standard for the mass transit industry.

ERSAT: latest satellite generation that interfaces and integrates the railway technology ERTMS

(European Rail Traffic Management System) with the navigation and satellite positioning technology

Galileo. The acronym comes from ER, for ERTMS, and SAT, indicating the satellite technology.

ERTMS: The European Rail Traffic Management System, or ERTMS, was introduced by the EU in

1992 as a means of creating a uniform system of command, control and coordination of rail traffic to

allow for ‘‘interoperability’’ throughout EU territory. The ERTMS standard exists at three levels

ETCS: The European Train Control System (ETCS) is a signaling, control and train protection system

designed to replace the many legacy safety systems currently used by European railways, especially

on high-speed lines.

HSL: High Speed Line, or HSL, refers to railway lines with capacity for speeds in excess of 200 km/h

(125 mph).

45

Glossary

IXL: Interlocking System. An interlocking system is responsible for the reliable and safe movement of

trains inside a station, through complex junctions and for the length of the line. The interlocking

system ensures that train movement is permitted only when a route is available and the switches

along this route are safely locked in their position. In all cases the interlocking allocates a track portion

or a route to one train at a time, excluding all others.

LRT: Light Rail Transit, or LRT, refers to a form of urban rail transit that utilizes equipment and

infrastructure that is typically less massive than that used for metro systems, with modern light rail

vehicles usually running along the system.

PTC: Positive Train Control, North American freight railway implementation of CBTC.

RBC: Radio Block Centre. All trains automatically report their exact position and direction of travel to

the RBC at regular intervals. RBC sends by radio fail safe information to the train (ATP).

SCADA: A Supervisory Control And Data Acquisition system, or SCADA, allows for the supervision of

the various subsystems at work in a railway or mass transit environment. SCADA collects information

from remote installations, transfers it back to a central office, analyzes the information, takes

appropriate action and displays that data on a number of operator screens.

SCC: Automation – Supervision system used for railways system.

SCMT: Sistema di Controllo della Marcia del Treno. Automatic train protection system.

TMS: Traffic Management System

TVM: Transmission Voie-Machine (TVM, track-to-train transmission in English) is a form of in-cab

signalling originally deployed in France and used on high-speed railway lines.

VSS: Vital Safety Server used in freight application (both as for IXL and RBC).

46

Glossary

Ansaldo STS SpA

Via Paolo Mantovani, 3

16151 Genoa, Italy

V.P. Investor Relations

Roberto Corsanego

investorelations@ansaldo-sts.com

www.ansaldo-sts.com

Tel: +39 010 655 2076

Fax: +39 010 655 2055

47

Our commitment to the theme of sustainable development is expressed in the countries where we operate, across five continents, through the dissemination

of our corporate vision, attention to environmental, social, and promote our work through a climate of cooperation with local cultures.

In coherence with our vision we have joined the Global Compact, a voluntary initiative launched by the UN to spread the culture of respect for human rights, labor, environment and the

fight against corruption.

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